How long after debt review can I buy a house?

The process of buying a house after debt review can be initiated through two main routes: completion of the debt review process and receiving a clearance certificate, or removal of the debt review through the courts.

1. Completion of Debt Review Process. Once you’ve received a clearance certificate, which is issued when all the restructured debt has been paid off, you can start the process of buying a house. This could take anywhere from a few years to several years, depending on the amount of debt and your repayment plan. After receiving your clearance certificate, you should be able to apply for credit within a week. However, you will need to allow credit bureaus some time to update their records accordingly, to reflect that you are no longer in an active debt review.
2. Removal of Debt Review through Court. You or your debt counsellor can apply for the removal of the debt review. The court process typically takes between 3 to 6 months, although this duration can extend if there are complications and delays. Once the court order is obtained, the National Credit Regulator (NCR) will need to verify the court documents, which usually takes 7-14 business days. The credit bureaus will need a minimum of 21 business days to update your credit report to reflect that you are no longer under debt review.

In both cases, it’s important to work on rebuilding your credit score. Paying all your debts on time, keeping your credit use low, and not applying for new credit are some of the ways you can improve your credit score. Once you’ve improved your credit score, you can start thinking about the home-buying process. First, you’ll need to save for a deposit. The larger your deposit, the smaller your home loan will need to be. This could also help you secure a better interest rate.

Next, you’ll need to get pre-approved for a home loan. This involves a credit check and the bank’s assessment of your financial situation. Once pre-approved, you can start looking for a house within your budget.

Please note that the exact duration may vary depending on individual circumstances and the specific policies of the credit bureaus involved.

Got More Questions? We have gathered the most frequently asked questions about exiting debt review here.

Book your Free Consultation with The National Debt Review Center

USE THE BELOW DEBT REVIEW REMOVAL FORM TO APPLY FOR YOUR DEBT REVIEW REMOVAL ONLINE

NDRC Facebook Page

Know the debt review removal process.

The National Debt Review Center